After a very bearish closure of last week (candles perspective) I reevaluated bearish paths for major US indices. Today I am posting a study on possible scenarios for $DJI that I believe has the cleanest waves in the last couple of years. The index also made the most bearish formations of candles among the other indices.
The weekly candles confirmed a Spinning Top and formed a Tower Top. The monthly has a good chance to close as a bearish Engulfing on a breakdown from overbought RSI.
The other major indices made somewhat similar signals. It made me think that market is setting for something big and I reexamined possible bearish options from the Elliott Waves perspective.
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